Correlation Between China Infrastructure and Athenex
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and Athenex at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Infrastructure and Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Infrastructure Construction and Athenex, you can compare the effects of market volatilities on China Infrastructure and Athenex and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Infrastructure with a short position of Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and Athenex.
Diversification Opportunities for China Infrastructure and Athenex
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Athenex is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex and China Infrastructure is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Infrastructure Construction are associated (or correlated) with Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of China Infrastructure i.e., China Infrastructure and Athenex go up and down completely randomly.
Pair Corralation between China Infrastructure and Athenex
If you would invest 0.22 in Athenex on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Athenex or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Infrastructure Construct vs. Athenex
Performance |
| Timeline |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Infrastructure and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Infrastructure and Athenex
The main advantage of trading using opposite China Infrastructure and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, Athenex can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Athenex will offset losses from the drop in Athenex's long position.| China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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